FTC Testifies on the Rights of Employees Under the Fair Credit Reporting Act

by Sabrina I. Pacifici on October 20, 2010

News release: “The Federal Trade Commission today told the Equal Employment Opportunity Commission that the Fair Credit Reporting Act (FCRA) imposes requirements on Consumer Reporting Agencies (CRAs) – which include the three major credit bureaus – and on employers that use the information “to ensure that sensitive consumer report information is used with fairness, impartiality, and respect for consumers’ privacy.” Commission testimony given by Maneesha Mithal, Associate Director of the FTC’s Division of Privacy and Identity Protection, states that FCRA requirements placed on CRAs and employers are designed to promote privacy, accuracy, and fairness in the use of consumer reports. For example, before giving a consumer report to an employer, the CRA must take reasonable steps to ensure that the employer has a legitimate basis to obtain the report; must inform the employer of his or her obligation to provide certain notices to consumers; and must obtain the employer’s certification that he or she is complying with the FCRA and will not use consumer report information in violation of equal opportunity laws.”

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